Northern Rivers NSW Freight Scoping Study

Transcription

1 Northern Rivers NSW Freight Scoping Study Dr Maree Lake Dr Ken Doust Dr Elizabeth O Brien School of Environment, Science and Engineering Southern Cross University

2 1 Report Prepared For: Regional Development Australia Northern Rivers NSW Cover image: Rail Yard (Echo Net Daily, 2015)

3 2 Executive Summary This scoping study report details a methodology and process for a study on the freight network and supply chain requirements for the Northern Rivers NSW. It has been prepared in response to the identification, by Regional Development Australia Northern Rivers (RDA NR), of a need for a strategy to improve the efficiency of freight movements across the region to assist local industry and other stakeholders improve the economic potential of the region. The objective of the proposed study is therefore to understand and quantify the impediments and supply chain restrictions of the regions freight network and develop strategies to facilitate the efficient and effective movement of freight, to and from the Northern Rivers region. As a good quality transportation network is vital to a region achieving its economic growth potential, this would enable regional development. Source: ABC, 2014 The scoping study has focused on developing a suitable methodology to understand the supply needs of the Northern Rivers area and has been developed based on extensive reviewing of similar studies, best practice guidelines and other relevant documentation. A four step process is proposed, for which the first step is to conduct in depth consultation with stakeholders to identify network and system deficiencies. Stakeholder engagement is critical to the success of the proposed study. A number of stakeholders within industry and local governments have already pledged support for participation in a larger study. This list is not exhaustive, however, and the larger study would expand on these stakeholders to ensure the needs of smaller operators are considered when determining the requirements for the region. The extensive consultation process would give an enhanced appreciation of the influences on the freight task, and provide a mechanism by which business and industry in the region can have direct input into the formulation of a freight network strategy. The proposed process assesses the strategic and economic importance of the projects in the appraisal process and weighting criteria, so that the study achieves the project objectives of enabling regional growth and development. The study would result in an identification of projects and a quantification of benefits, with the potential to inform future network improvements and initiatives. It would provide a basis for investment in the freight network, improving the regions capacity for growth and enabling business development.

4 3 Contents EXECUTIVE SUMMARY... 2 CONTENTS... 3 BACKGROUND... 4 FREIGHT PLANNING IN AUSTRALIA... 4 NORTHERN RIVERS NSW... 7 Geographical Location... 7 Industry Overview... 8 Agriculture Products Manufacturing Products Industry Spatial Distribution Freight Network Overview Roads Rail Export Gateways Supply Chain Challenges, Upgrades and Future Opportunities OTHER FREIGHT STUDIES AND POLICY CONTEXT PROPOSED METHODOLOGY PROCESS OUTLINE STAKEHOLDERS DATA INPUTS APPRAISAL PROCESS EXPECTED OUTCOMES CONCLUSIONS AND RECOMMENDATIONS REFERENCES... 52

5 4 Background Freight Planning in Australia In , the domestic freight task in Australia was almost 600 billion tonne kilometres, which is equivalent to approximately 26,000 tonne kilometres of freight moved for every person in Australia (Bureau of Infrastructure, Transport and Regional Economics, 2014). The major freight movements in Australia are shown in Figure 1. These total freight volumes have quadrupled over past four decades, predominantly due to significant growth in road freight and strong growth in mining related rail freight volumes. Figure 1: Major Freight Movements in Australia Source: Bureau of Infrastructure, Transport and Regional Economics, 2014 While rail carries a larger volume of freight overall, road transport is the main mode of transport for the majority of commodities produced and/or consumed in Australia (Bureau of Infrastructure, Transport and Regional Economics, 2014). The road freight volumes in Australia are shown in Figure 2.

6 5 Figure 2: Road Freight Volumes in Australia Source: Bureau of Infrastructure, Transport and Regional Economics (2014). It is recognised that freight and logistics are a vital component of economic activity. The contribution to the economy is often quantified, however, Transport for NSW (2013a, pg 7) argue that an estimate of the proportion of Gross State Product (GSP) attributable to logistics significantly understates its contribution to the whole economy, as logistics is a facilitator or enabler of almost all economic activity. So while the direct contribution of is often quantified, it is only a fraction of the entire logistics sector. While acknowledging that direct measures of how logistics contributes to the economy are difficult to determine, Transport for NSW (2013a) estimate that: Gross Value Added (GVA) for freight and logistics in NSW was 13.8% of Gross State Product (GSP) or $58 billion in The number of people working in logistics in NSW is 500,000, or almost 14% of NSW employment. The development of existing and new industries is dependent upon the availability of efficient and low cost transport, and improved logistics and supply chain networks can transform the economy of regional and urban areas. Transport for NSW (2013a) has forecast the NSW freight task to almost double by 2031, with the volume of freight moved on the NSW transport network increasing from 409 million tonnes in 2011 to an estimated 794 million tonnes in Figure 1 details the estimated increases by commodity.

7 6 Figure 3: NSW Commodity Movements Source: Transport for NSW, 2013a This expected dramatic increase in the freight task has significant implications for the existing freight network. Primary industries, concentrated in regional Australia, make up almost twothirds of our merchandise exports (Department of Infrastructure and Regional Development, 2014). The Standing Council on Transport and Infrastructure identified the following long term Challenges influencing the land freight task in Australia (Standing Council on Transport and Infrastructure, 2013, pg 10): An increase demand for Australian commodities from fast growing economies in Asia. The Department of Infrastructure and Regional Development reported (2014) that global food demand expected to rise by around 77% to 2050 from 2007 levels, with most demand coming from Asia. Ongoing demand for agricultural products expected to generate significant export earnings (almost $30 billion for farm commodities in financial year ). Depleting local oil reserves, and volatile price of oil resulting in short term business risks and long term energy sourcing challenges. Changing climatic conditions estimated to cause a further temperature increase of 1 C and up to a 24% increase in days of extreme weather by 2030, which can hinder the movement of freight by compromising critical infrastructure. Concerns about environmental issues.

8 7 Australia s population is estimated to reach almost 30 million by 2030, which has implications both for the freight task and the efficiency with which freight can be moved through urban areas. Fiscal constraints create pressure on budgets as government revenues fall relative to expenditure. Technological developments continue to create opportunities to drive growth in the efficiency and productivity of freight movements. Combined with the scope and importance of the current freight task in Australia, these factors underpin the case for priority attention and focus to the national, and regional, freight task. Northern Rivers NSW Geographical Location The Northern Rivers region is located in north eastern New South Wales, covering an area of 20,706 square kilometres. As shown in Figure 4, the region is bounded by the NSW state border to the north, the Great Dividing Range to the west, coastline to the east, and the mid north coast region to the south. It has a population of almost 300,000 people and comprises the areas of Tweed, Byron, Kyogle, Lismore, Ballina, Richmond Valley and Clarence Valley. The region is characterised by a unique sub tropical climate, diversity of soils (e.g. alluvial, volcanic), rolling hills and valleys, coastal hinterlands, rivers and streams and a variety of pasture types. Figure 4: Northern Rivers Region Source: Regional Development Australia 2013a

9 8 Industry Overview The diversity of the Northern Rivers regions supports the production of a large variety of food and forestry products, including: gourmet foods, meat and dairy products, sugar, coffee, tea, fruits, vegetables and numerous animal crops. Agriculture and horticulture, alongside manufacturing through the diversification of value added items, are important industries in contributing to the ongoing economic vitality and development of the region. At the same time, these represent the industry sectors most affected by freight network and supply chain requirements. The Northern Rivers region is a base for 7,710 agricultural businesses (17.5% of those in NSW or 5.7% of those in Australia), employing 4,526 people, which represents 5.2% of the region s workforce (Regional Development Australia Northern Rivers, 2013b). In Kyogle agriculture, forestry and fishing account for 22% of employment, while in the Richmond Valley, where the Casino meatworks is a large employer, manufacturing accounts for 20% of total employment, of which 75% is attributed to food manufacturing. The region also has a strong agriculture and food production sector, which provides employment for 2,648 people (Regional Development Australia Northern Rivers, 2013b). Regional Australia Institute (RAI) (n.d.) developed the [In]Sight framework, which provides a measure of the competitiveness of each Australian region, with the competitive advantage of the Northern Rivers is ranked as the second highest in Australia for Net Primary Productivity. As a measure of the economic contribution of each industry to the Northern Rivers region, regional economic contribution is an indicative measure of the economic size of an industry sector. It is representative of the value of sales generated by each industry, minus the cost of its inputs to production. These include the cost of labour, materials, services purchased, depreciation and other costs (National Institute of Economic and industry Research (NIEIR), 2016). Figure 5 gives the regional economic contribution of all industry sector sales in the Northern Rivers region.

10 9 Figure 5: Regional Economic Contribution of All Industry Sector Sales, Northern Rivers Region, Source: northern rivers/industry sector analysis?indkeynieir=23200&bmid=20 The extent of the freight and logistics task within the region is partially indicated by the gross value of imports and exports from industry sectors which contribute most heavily to it, as shown in Figure 6 and Figure 7. Of the industries listed this represents $7.1 billion in gross value of commodities moved. Figure 6: Gross Value of All Industry Sector Exports, Northern Rivers Region, Source: northern rivers/industry sector analysis?indkeynieir=23200&bmid=20

11 10 Figure 7: Gross Value of All Industry Sector Imports, Northern Rivers Region, Source: northern rivers/industry sector analysis?indkeynieir=23200&bmid=20 Agriculture Products In , the agriculture, forestry and fishing industry represented $417 million to the regional economy, as shown in Figure 8. As a subset, agricultural products represented the single most valuable sector at $354 million. Figure 8: Regional Economic Contribution of Agriculture, Forestry and Fishing Sales, Northern Rivers Region, Source: northern rivers/industry sector analysis?indkeynieir=23200&bmid=20

12 11 The major agriculture production activities within the Northern Rivers region can be broken down into a number of categories by production type. This includes broadacre crops, fruit and nuts, livestock and vegetables. In , the single largest gross value category was livestock for slaughter and other disposals, followed by fruit and nuts as well as livestock products and broadacre crops, as shown in Figure 9. Figure 9: Gross Value of Agricultural Commodities Produced, Northern Rivers Region, Source: Australian Bureau of Statistics, 2016 Broadacre Crops The region produces a number of broadacre crops, as shown in Figure 10 and Figure 11. This includes wheat, barley, grain sorghum, maize, triticale, oilseeds and sugar cane. Of these crops, sugar cane is a major land use and landscape feature in the Northern Rivers region. Sunshine Sugar is the trading name for the NSW Sugar Milling Co operative Limited which operates three sugar mills in the Northern Rivers (at Condong, Broadwater and Harwood) as well as a refinery at Harwood. The NSW sugar industry occupies approximately 34,000 hectares of the Northern Rivers region. At the end of 2015, the NSW Sugar Milling Co operative Limited crushed over 2.1 million tonnes of sugar cane, producing 254,877 tonnes of sugar (Australian Sugar Milling Council (ASMC), 2016).

13 12 Figure 10: Gross Value of Selected Broadacre Crops, Northern Rivers Region, Source: Australian Bureau of Statistics, 2016 Figure 11: Selected Crop Production, Northern Rivers Region, Source: Regional Development Australia Northern Rivers, 2011 It is estimated that there are 500 ha of coffee grown in the Northern Rivers region. The region s cool sub tropical climate provides unique growing conditions for coffee beans, which are not affected by pests and can be allowed to grow naturally. The region is home to numerous brands of coffee including Zentvelds Coffee, Tuntable Estate Organic Coffee, Mackellar Range Coffee, Zoom Coffee and others. Madura and Koala Tea companies are also well established, and a

14 13 number of boutique tea producers are emerging with an emphasis on health or specialty teas. English Breakfast, Earl Grey, spiced teas, herbed teas and special blends are all produced in the region. Livestock and Livestock Products Poultry (for eggs and meat), dairy cattle and meat cattle are the favoured types of livestock in the Northern Rivers region, as shown in Figure 12 and Figure 13. The dominance in value of beef production over other forms of livestock production sees the Northern Rivers region produce a significant amount of livestock products, such as beef and milk. The Northern Co operative Meat Company has a large beef facility in Casino and a pork facility in Booyong, with pigs also representing a growing livestock category within the region. This processing company produces beef and pork products, primarily for export to Asia, Europe and the United States. The Northern Rivers dairy industry is well supported by the high rainfall and lush pastures, which are a key factor in production of high quality milk and dairy products. A number of key dairy factories reside within the region and produce high quality milk products. Milk and ice cream production take place in the Northern Rivers region and produced 147 million litres of milk and 36 million litres of ice cream in Major customers include Fonterra, Parmalat, National Foods as well as Coles, Sara Lee, Aldi, Woolworths and export customers. Figure 12: Gross Value of Livestock (slaughtered and other purposes) and Livestock Products, Northern Rivers Region, Source: Australian Bureau of Statistics, 2016

15 14 Figure 13: Livestock Numbers, Northern Rivers Region, Source: Regional Development Australia Northern Rivers, 2011 Vegetables The Northern Rivers is a major region for several vegetable crops. Nearly all of NSW s sweet potatoes, peas and ginger are produced within the region, as shown in Figure 14 and Figure 15. In addition, the region sees significant quantities of lettuce, tomatoes, beans, chillies, garlic, cucumber and herbs. The majority of products are export from the region or value added locally.

16 15 Figure 14: Gross Value of Vegetables (for human consumption), Northern Rivers Region, Source: Australian Bureau of Statistics, 2016

17 16 Figure 15: Vegetables for General Consumption, Northern Rivers Region, Source: Regional Development Australia Northern Rivers, 2011 Fruits & Nuts The Northern Rivers region is nationally significant for the production of several fruit and nut crops. The largest majority of macadamia nuts, blueberries and guavas produced in Australia are sourced from the Northern Rivers region, as shown in Figure 16 and Figure 17. In 2012, macadamia production reached 20,143 tonnes, a total economic value for the region of $193.5 million (Australian Macadamia Industry (AMS), 2012). The Northern Rivers region has five processing plants at Agrimac Macadamias and Macaz International both at Alstonville, Macadamias International Australia P/L at Dunoon, MPC (Macadamia Processing Company) at Alphadale and Pacific Farm Services at Brooklet. In addition, significant quantities of bananas, avocados, orchard fruits and berries are produced in the region, which is home to very unique products, such as finger limes, which cannot be grown in any other parts of Australia.

18 17 Figure 16: Gross Value of Fruits and Nuts, Northern Rivers Region, Source: Australian Bureau of Statistics, 2016

19 18 Figure 17: Fruit & Nut Production, Northern Rivers, Source: Regional Development Australia Northern Rivers, 2011 Manufacturing Products In , the manufacturing industry represented $611 million to the regional economy, as shown in Figure 18. Manufacturing activities include the processing of materials, substances or components into new products, whether self produced or purchased. The materials, substances or components processed are raw materials that are products of agriculture, forestry, fishing and mining, or products of other manufacturing activities. This includes milk bottling and pasteurising, processing and canning or bottling, fresh fish packaging, leather tanning and dressing, wood preserving and treatment, and other textile manufacturing. As a subset, food and beverage products represented the single most valuable sector at $265 million, almost 44% of all manufacturing activity in the region.

20 19 Figure 18: Regional Economic Contribution of Manufacturing Sales, Northern Rivers Region, Source: northern rivers/industry sector analysis?indkeynieir=23200&bmid=20 Industry Spatial Distribution By virtue of gross revenue generated per sub region, the greatest activity in the agriculture, forestry and fishing industries takes place in the northern areas of the region, as shown in Figure 19. This activity includes horticulture, livestock production, aquaculture, forestry and logging, and harvesting fish and other animals from farms or their natural habitats.

21 20 Figure 19: Northern Rivers Region Gross Revenue Generated (Agriculture, Forestry and Fishing), 2015 Source: The greatest activity in manufacturing is largely centred in the vicinity of larger regional centres, as shown in Figure 20. Activity includes all forms of manufacturing outlined above. Figure 20: Northern Rivers Region Gross Revenue Generated (Manufacturing), 2015 Source:

22 21 Freight Network Overview Within the region are four major road corridors, two north south links and two east west links, as well as the main north south rail corridor from Brisbane to Sydney/Melbourne, as shown in Figure 21. Any existing transport limitations would challenge industries in the region, affecting the delivery of raw materials and the export of finished products, particularly to markets and gateways in south east Queensland. Figure 21: Northern Rivers Region Major Road and Rail Corridors Source: Google Maps

23 22 Roads East West Corridors The main east west links are the Bruxner Highway and the Gwydir Highway. The Bruxner Highway runs in the north of the region through Lismore and Casino to Tenterfield. It links the Pacific Highway near Ballina to Casino, after which it continues to the New England Highway at Tenterfield and further west to Boggabilla. The Lismore to Bangalow Road connects Lismore with the Pacific Highway as an alternative to the Bruxner Highway, while at Casino the Summerland Way provides a connecting route to Grafton to the south and to the Queensland border and Brisbane via Kyogle to the north. The Gwydir Highway in the south of the region runs from Grafton to Glen Innes, Inverell and Moree. It links with the Pacific Highway and Summerland Way near South Grafton, after which it continues to the New England Highway at Glen Innes and further west through Moree. While both corridors play important roles as east west regional freight routes, of the two links only the Gwydir Highway accepts up to 26 metre B doubles on its full length between the New England Highway and the Pacific Highway (RMS 2009). This is due to mountainous terrain, steep grades, narrow pavements and the low speed, limited capacity single lane Tabulam Bridge on the Bruxner Highway west of Casino proving unsuitable for larger heavy vehicles. As a result, heavy vehicle traffic remains highest on the sections of the Bruxner highway between Casino and the Pacific Highway, reflecting the corridor s function of providing access to regional centres rather than serving as an inter regional freight route. Therefore, the Gwydir Highway serves as the main freight B double connection between the Pacific and New England Highways. North South Corridors The main north south road corridors are the Pacific Highway and the Summerland Way. The Pacific Highway runs in the east, largely parallel to the coastline, connecting Brisbane and Sydney through Grafton and Ballina. This is one of the busiest road corridors in Australia and the busiest within the region. It is currently undergoing major upgrade works aimed at increasing capacity from a two lane highway to a four lane divided road along the entire length of the highway. As of 31 May 2016, major sections between Woolgoolga and Ballina are either under construction or being prepared for construction (RMS 2016). The Summerland Way corridor, running in parallel and in between the Pacific and New England Highways, extends from the Gwydir Highway and existing Pacific Highway at South Grafton to the Queensland border north of Woodenbong. As outlined above, this corridor provides important cross connectivity between the Pacific/Gwydir Highways at Grafton and the Bruxner Highway at Casino, giving a more direct southern connection to the Casino region and serving as an important detour route when the Pacific Highway is closed between Grafton and Ballina. While both the Pacific Highway and Summerland Way corridors play important roles as north south regional freight routes, only the Pacific Highway accepts up to 26 metre B doubles along the full length of its corridor, Summerland Way only accepting 26 metre B doubles south of Kyogle. In conjunction with a lack of a viable east west corridor for larger heavy vehicles west of Casino, this sees the Pacific Highway as the only feeder for heavy vehicles into the South East Queensland growth areas from much of the Northern Rivers Region.

24 23 Traffic Volumes The NSW Roads and Maritime Services collect traffic volume information from roadside traffic collection devices across the Northern Rivers region. This is shown in Table 1. Highway Bangalow Road Bruxner Highway Gwydir Highway Pacific Highway Summerland Way Location South of Withers Street, Bexhill East of Bruxner Crescent, Goonellabah North of Schneiders Lane, Mckees Hill South of Bruxner Road, Tabulam East of Old Glen Innes Road, Waterview Heights North of Bristol Arms Road, Ramornie East of Clarence Street, Cowper North of Banana Road, Woombah West of Plantation Drive, Ewingsdale South of Heritage Street, Chinderah North of Turf Street, Grafton South of Griffiths Avenue, Casino North of Omagh Road, Cedar Point South of Kunghur Street, Wiangaree Table 1: Select Average Daily Traffic Counts (AADT), 2011 Annual Average Daily Traffic (AADT) Average Light Vehicles (AADT) Percentage Light Vehicles Average Heavy Vehicles (AADT) Percentage Heavy Vehicles 8,686 8,078 93% 608 7% 27,611 26,507 96% 1,104 4% 5,640 5,132 91% 508 9% % 86 10% 2,083 1,896 91% 187 9% % % 7,784 6,072 78% 1,712 22% 7,657 5,972 78% 1,685 22% 18,553 16,327 88% 2,226 12% 29,051 25,855 89% 3,196 11% 6,405 5,957 93% 448 7% 3,433 3,021 88% % 3,419 3,111 91% 308 9% 1,458 1,298 89% % *All Days (AADT) This includes volume from all days of the week with no exclusions for public holidays or weekends. Source: publications/statistics/traffic volumes/index.html The high volumes of traffic on the northern end of the Pacific Highway points to the increasing congestion issues that are emerging in the Gold Coast portion of the corridor. The Gold Coast

25 24 corridor has been identified as one of the highest volumes of heavy vehicle and overall traffic in the national highway audits, as demonstrated in Figure 22 (Acil Allen Consulting, 2014). Figure 22: Number of vehicles per kilometre for the National Highway by audit region in Source: Acil Allen Consulting, 2014

26 25 Rail The main north south rail corridor between Sydney and Brisbane runs through the Northern Rivers Region. The alignment of this corridor passes through Grafton, Casino and other towns such as Glenreagh and Kyogle. In 2005, 7 million tonnes of goods was estimated to traverse the corridor between Brisbane and Sydney (Australian Rail Track Corporation (ARTC), 2007). This standard gauge corridor is largely single track with multiple stations, passing loops, private sidings and support sidings between Glenreagh and the Queensland border. Due to corridor conditions, such as difficulty in gaining reliable train paths through metropolitan Sydney on the passenger network, trains using this alignment are limited to lengths of 1500 metres. The Northern Sydney Freight Corridor will improve access from Gosford to North Strathfield, but not increase the train length capability beyond 1500 metres. In NSW there are six metropolitan intermodal terminals and 22 regional intermodal terminals (Transport for NSW, 2013a). Figure 23 shows the intermodal terminals in NSW, with the only designated intermodal terminal in the Northern Rivers being at Casino. This is a key intermodal terminal, providing the only facilities in the Northern Rivers in close proximity to Queensland, suitable for loading and unloading freight between road and rail. The terminal is shown in Figure 24. As of 2016, there are no existing operating intermodal terminals of any kind (bulk or containers) within 100 km of Casino (Casino Rail Freight Terminal Pty Ltd (CRFT), 2016).

27 26 Figure 23: Intermodal Terminals in NSW Source: Transport for NSW, 2013a

28 27 Figure 24: Casino Intermodal Terminal Source: Casino Rail Freight Terminal Pty Ltd (CRFT), 2016

29 28 The north south rail corridor into Queensland connects the Northern Rivers Region with the significant rail supply chain network in Brisbane and its western and southwestern hinterland, known as the scenic rim. Presently, the major intermodal terminal in Brisbane is Acacia Ridge, to the south of Brisbane CBD and a key terminating point for the north south rail services from Sydney and Melbourne. Acacia Ridge is also connected to the Brisbane Multimodal Terminal at the Port of Brisbane via a dual standard and narrow gauge corridor which enables inbound containers to be sent by rail through to Sydney and Melbourne and outbound containers to be shipped from the Port of Brisbane. A shuttle service is planned to operate between the Port of Brisbane and Acacia Ridge to increase the mode share by rail into and out of the port. While the Acacia Ridge terminal has sufficient capacity at present for both its interstate and intrastate freight task, increasing growth in freight volumes by rail and increasing congestion in the inner Brisbane region is beginning to shift longer term planning towards additional terminals in the west and southwest of Brisbane. An emerging intermodal terminal in this area that has close proximity with the Northern Rivers Region is at Bromelton, to the west of Beaudesert. The Bromelton Intermodal Terminal and industrial site is now a designated State Development Area (Figure 25) and is shaping to play an increasing role strategically in the southern Queensland freight distribution network. The terminal is located on the north south rail corridor from Sydney and in close proximity to the proposed inland rail corridor (Department of Transport and Main Roads, 2013). More recently, freight operator SCT has established an intermodal terminal to commence operation in 2017 and are considering utilising shuttle trains between the Port of Brisbane and Bromelton as a strategic addition to their current rail operation based within Brisbane.

30 29 Figure 25: Bromelton State Development Area Source: general/bromelton sda maps and precincts.html

31 30 Export Gateways The Northern Rivers Region has access to a number of export gateways providing supply chain links beyond the states of NSW and Queensland and too overseas destinations. Amongst these are several important sea and airport facilities. Sea Ports Two sea ports are in reach of the Northern Rivers Region. The major seaport of Brisbane and the regional seaport of Yamba. The Port of Brisbane is the third largest seaport in Australia, importing containers and exporting both bulk and containers, with the layout shown in Figure 26. In 2012 more than a million containers passed through the Port. Of these 1.5% of the containers exported via the Port originated from the Northern Rivers Region (Port of Brisbane, 2013), which in 2012 equated to 4656 standard twenty foot shipping containers (TEUs). Of these up to 10 TEUs of beef meat are transported daily from Casino s Northern Co operative Meat Company Ltd to the Port of Brisbane for export. Figure 26: Port of Brisbane Layout Source: Port of Brisbane, 2013 In the order of 95% of the container movements to and from the port are by road with 75% of the export containers packed within 100 kms of the port. The Port of Brisbane and Acacia Ridge Intermodal Terminal in relation to rail and road network are shown in Figure 27.

32 31 Figure 27: Port of Brisbane and Acacia Ridge Intermodal Terminal in relation to rail and road network Source: Queensland Transport, 2009

33 32 However, there are a number of impediments and blockages in the Port s logistics chains, in particular road congestion and rail infrastructure connectivity within Brisbane, as demonstrated in Figure 28. Figure 28: Access to Port of Brisbane: Estimated level of service for Brisbane and adjacent regions for 2031 Source: Port of Brisbane, 2013 The Port at Yamba, shown in Figure 29, handles approximately 12,000 tonnes of cargo per annum. Typically this is break bulk, exports consisting of timber (hardwood logs), treated poles, live animals, manufactured items, vehicles, kit houses, boats, explosives and general cargo; and imports consisting of timber products, kentia palm and baggage (Port of Yamba, 2016). There have been a number of proposals to expand the port, but these are not under consideration at this time.

34 33 Figure 29: Port of Yamba Source: Google maps Airports Major airport facilities with international reach are located at Brisbane, the Gold Coast and Wellcamp, as shown in Figure 30. Of these Wellcamp airport is the most recently development, situated to the west of Toowoomba, which is a privately developed airport that is now seeing regular weekly international freight services in wide bodied aircraft. Figure 30: Airports with International Connections Source: Google Maps

35 34 Gold Coast Airport (GCA) patronage is growing at a significant rate, as demonstrated by Figure 31, though currently aircraft do not carry significant amounts of airfreight. The airport is beginning an expansion in its on ground operational capacity to enable a greater number of aircraft movements. Patronage and economic benefit (NSI 2014) has been projected to double by 2030, however projections by the GCA operators anticipate patronage to increase almost three fold to 16 million passengers annually by The GCA master plan (GCAMP 2011) foreshadows the potential for growth in international freight as a spinoff of growing patronage from low cost carrier airlines, with wide bodied aircraft having the capacity to include freight to enhance their commercial returns. Figure 32 gives the projected increase in Direct Economic Contribution. Figure 31: Fastest growing airports in Australia between and by total passenger movements Source: Acil Allen Consulting, 2014

36 35 Figure 32: Projected increase in Direct Economic Contribution (DEC) between and for the 25 airports with the highest DEC in ($ millions, dollars) Source: Acil Allen Consulting, 2014 Supply Chain Challenges, Upgrades and Future Opportunities The transport network should be seamless, that is, it does not stop at local Council or state borders. This study therefore considers the linkages from the Northern Rivers region to South East Queensland, in addition to other locations with NSW, and international markets. Due to the location of the region, the shortest distance to ports and airports to export goods overseas is via Queensland. One of the specific actions for the Northern Rivers Region listed by Transport for NSW in their Northern Rivers Regional Transport Plan (Transport for NSW, 2013b) is that they will work with the Queensland Government on cross border issues that relate to transport regulation and infrastructure that supports travel into South East Queensland. The predicted future growth of the Gold Coast and its hinterland will likely impact on the ability for road freight to traverse the Pacific Highway into Brisbane distribution centres and further north, placing greater pressure on the Summerland Way and other routes as reliable alternate corridors for freight movements by road. The Bridges for the Bush program is funding the replacement of the Tabulam Bridge increasing the capacity of the Bruxner Highway connecting to the New England, an important connection for

37 36 the cattle being processed at the Casino meatworks. However, this route remains constrained by the tight curves on the Great Dividing Range. Within and around the Northern Rivers region there exist a number of infrastructure improvements possibilities which can contribute to strengthening freight supply chains within the area, leading to an increase in both the volume and value of products produced through improved access to future and as yet currently untapped market demand. The construction of the new intermodal terminal at Bromelton, within the scenic rim of Brisbane s southwest, provides an opportunity for the Northern Rivers region. Its location along the northsouth corridor connecting Sydney and Brisbane together with its status as one of South East Queensland s strategically located distribution and logistics centres gives Bromelton access to both the Brisbane market but also other intrastate, interstate and international markets. The gateways of Wellcamp Airport, Brisbane Airport, the Port of Brisbane as well as connection to the proposed inland rail corridor, which is shown in Figure 33Figure 33:, are key connections of importance to the Northern Rivers supply chain. Figure 33: Indicative Inland Rail Alignment Source: Department of Transport and Main Roads, 2013 The potential to operate a rail shuttle between the developing Casino intermodal terminal and the Bromelton intermodal terminal, providing a staging point for goods, enabling them to reach into the Brisbane and wider distribution freight networks, may provide an effective and realistic supply chain improvement option, given the difficult terrain in the Mt Lindsay area for improvements on the Summerland Way. Within the Northern Rivers Region, improvements to local supply chain infrastructure to feed into the major trunk supply chain routes which connect to the Queensland and NSW markets requires

38 37 continuing improvement. As the supply of product increases with the demand, local roads are likely to become stretched in both durability and capacity. Innovative options are needed for ensuring effective and efficient supply chain from farm and manufacturing facility to reach the trunk supply chain nodes such as the Casino Intermodal Terminal. A recent trend that provides an opportunity for the Northern Rivers Region is the significant growth in demand for shelf ready products in key international markets such as China. For agricultural products produced in the Northern Rivers to capture a greater share of these markets, this will likely require packaging within the region and quick transit for freight and export. The airport at Wellcamp, in part expected to serve as a major air freight hub for locally produced products such as chilled beef and other perishables, represents one of the first forays into facilitating a rapid supply chain for industries within surrounding regional areas, including the Northern Rivers. As industries grow over time to meet this demand, it is anticipated that there will be greater demand and opportunity for utilising cargo capacity on international passenger flights at Gold Coast airport and Brisbane Airport to move goods rapidly to market. Within the Northern Rivers the potential for these type of rapid supply chain logistics operations could be a mix of all three gateways. This mix will be influenced by the supply chain effectiveness in reaching Wellcamp and Brisbane airport. Wellcamp appears to provide the best opportunity for shipping larger quantities rapidly, whilst Brisbane and Gold Coast airports provide the opportunity for smaller consignments. Access to the Gold Coast Airport is less likely than Brisbane Airport to be hampered by congestion over the next 10 years, however any future improvements to Brisbane airport freight supply chains may reduce any reliability and time disadvantage. Other Freight Studies and Policy Context The Northern Rivers region is at a significant disadvantage with regard to freight network planning and the associated economic impacts, as no freight study has been conducted for this region. A number of adjacent regions have already conducted freight studies, including Northern Inland Region NSW in November 2012, Central West in November 2014, and the Mid North Coast Region NSW , all of which were for the Regional Development Australia (RDA). Freight Studies reviewed in developing this scoping study report included, but was not limited to,: Northern Inland Region NSW: November 2012 Mid North Coast Region NSW: Central West NSW: November 2014 Riverina Region NSW: June 2014 Gippsland Region Victoria: June 2013 South East Queensland: January 2009 Hume Region Victoria: April 2013 Western Australian Regional Freight Transport Network Plan: 2012 Casino Intermodal Submission: March 2016 Containerised Cargo Demand Assessment Northern NSW: September 2015

39 38 The National Guidelines for Transport System Management in Australia (Australian Transport Council, 2006) provides an approach and national standard for strategic planning and appraisal of transport initiatives, and has therefore been utilised when developing the methodology for the larger study. In addition, relevant AUSTROADS guidelines and reports were consulted, such as Freight Task Industry Stakeholder Assessment (Austroads, 2009b), Identification of a Risk Indicator to Support Life Line Freight Routes (Austroads, 2016) and the Guide to Project Evaluation (Austroads, 2009a). Relevant local, state and national planning instruments that will be considered in the larger study include, but are not limited to: NSW 10 Year State Plan, NSW Government, 2011 Rebuilding NSW: State Infrastructure Strategy, NSW Government, 2014 NSW Long Term Transport Master Plan, Transport for NSW, 2012 Northern Rivers Regional Transport Plan, Transport for NSW, 2013b NSW Freight and Port Strategy, Transport for NSW, 2013a National Land Freight Strategy, Standing Council on Transport and Infrastructure, 2012 National Ports Strategy, National Transport Commission (NTC), 2010 Infrastructure Report Card NSW, Engineers Australia (EA), 2010 Australian Infrastructure Audit, Infrastructure Australia, 2015 NSW Economic Development Framework, NSW Department of Trade and Investment, 2014 Economic Development Strategy for Regional NSW, NSW Department of Trade and Investment, 2015 Northern Rivers Regional Action Plan (RAP), NSW Department of Premier and Cabinet, 2012 Northern Rivers Regional Plan, Regional Development Australia Northern Rivers, 2013 With respect to the Transport for NSW planning documents, NSW Long Term Transport Master Plan sets the strategic direction for transport in the state, while the Northern Rivers Regional Transport Plan provides more detail for the region. These link to other plans, including NSW 2021 and the Northern Rivers Regional Action Plan (RAP), as shown in Figure 34.

40 39 Figure 34: Interrelationship of Transport for NSW Plans Source: Transport for NSW, 2013b Proposed Methodology Process Outline The National Guidelines for Transport System Management in Australia (Australian Transport Council, 2006) detail the steps for a top down multi phase strategic approach to transport system management to achieve desired transport system objectives. This approach is complemented by bottom up information and feedback, to ensure that strategic thinking is informed by practical lower level information. The broad steps in the Framework are shown in Figure 35.

41 40 Figure 35: Transport System Management Framework Source: Australian Transport Council, 2006 Stages 3 to 6 in the Transport System Management Framework in Figure 35 relate to the process to identify deficiencies in the network, develop initiatives, appraise these initiatives and prioritise the projects. These are the broad steps proposed for the larger study. The other stages in the Transport System Management Framework relate to the objectives, which have initiated the study, and the actual implementation of the selected projects, which would be undertaken by government, and is beyond the scope of the study.

42 41 Thus the basic process proposed for the larger study on the freight network in the Northern Rivers NSW is comprised of four steps: 1. Identify network and system deficiencies, including conduct in depth consultation with stakeholders 2. Determine a list of potential projects for the transportation network 3. Quantify the potential benefits and costs of the projects 4. Determine project priorities and rankings based on a weighted criteria The outcome of Step 1 would be to conduct a network assessment and establish the deficiencies within the current freight network. The entire transportation network would be considered from a multi modal perspective, including road, rail, airport and port connections. This assessment would be undertaken through a combination of studies and extensive stakeholder engagement. Data collection and analysis will be required to provide essential inputs into this stage. Prior to deciding on potential improvements, it is essential that existing state of the network is understood, including: Current freight travel patterns and traffic conditions A physical inventory of the network Consultation with stakeholders An established the set of objectives, based on client and government aims The consultation process would give an enhanced appreciation of the influences on the freight task, thus enabling Step 1 to guide the identification of individual initiatives in Step 2. As part of identifying transportation network impediments to business and industry in the region, Step 1 would also involve supply chain mapping. Supply chain mapping is the process of accounting for the materials, processes and shipments involved in bringing goods to market. Supply chain mapping would ensure that the freight of raw materials and associated inputs to the production process of goods are considered, in addition to the freight associated with moving the assembled product to its destination. For example, considering the freight containing livestock entering a meat processing facility, as well as the freight leaving the facility with the products for market. Issues such as cold chains or cool chains, which are temperature controlled supply chains, would be considered during this step. Step 2 addresses the recognised network deficiencies from Step 1 by identifying potential solutions to these issues. There may be more than one solution to any particular issue, thus a list of potential projects which would improve the freight network to, from and within the Northern Rivers NSW will be developed. The outcome will be a range of initiatives that can potentially address transport challenges and contribute to achieving transport system objectives. These initiatives would be considered as part of overall network strategies. When developing the options, there are a number of ways of improving the network and dealing with a transport challenge. The infrastructure investment options are one of a number of different mechanisms by which improvements might be made. The process should consider the

43 42 full range of potential solutions or options, beyond the narrow focus on infrastructure provision or a single mode (such as roads). The Australian Transport Council (2006, Volume 1) lists the broad options as: Status quo: do nothing or no action required. Use existing transport system in a different way or more efficiently. Modify or add to existing transport system with new infrastructure, modified service or regulations. Alter proposed transport task in conjunction with another option. Technological solution. Organisational or process change. Education and information provision. In Step 3, the benefits and costs of the identified potential projects are quantified. Benefits can include aspects such as time savings, reduced vehicle operating costs, environmental impacts and safety impacts. To enable an evaluation to consider as wider range of factors as possible, it should account for the triple bottom line of social, environmental and economic factors. An evaluation should consider all relevant issues, not just those which are easily measured. Both the Australian Transport Council (2006) and Austroads, in their Guide to Project Evaluation (Austroads, 2009a), recommend a 3 phase filtering system for the appraisal of identified transport initiatives: Strategic Merit Test: first order determination of the 'strategic fit' of a proposed initiative with transport system objectives, to ensure alternatives assessed against project purpose and align with broader objectives and policies. Rapid Appraisal: broad brush quantitative assessment to eliminate proposals. A preliminary comparative analysis of cost effectiveness based on preliminary concept level cost estimates, and initial assessment against project purpose and other criteria. Detailed Appraisal: comprehensive analysis of the impacts and overall merit. The preferred options(s) are subject to detailed evaluation based on benefits and costs and assessment of other potential project impacts. The results are presented in a business case for the recommended solution. Benefit Cost Analysis (BCA) plays a key role in the appraisal system, however perceived limitations of BCA has led to the development of modified approaches such as complementary techniques, which facilitates better analysis and presentation of non monetised information, and adjusted BCA, which extends conventional BCA by incorporating predetermined weights for objectives (Australian Transport Council, 2006). As part of the process of quantifying the benefits of the options, the future transportation demand resulting from changes to the network would need to be predicted. The techniques for forecasting travel demand would be utilised. The four step process in shown in Figure 36.

44 43 Trip Generation forecasts the number of trips that will be made Trip Distribution determines where the trips will go Mode Usage predicts how the trips will be divided among the available modes Trip Assignment predicts the routes that the trips will take, resulting in forecasts of traffic volumes for the network Figure 36: Four Step Process for Travel Demand Forecasting This process could be used in conjunction with the stakeholder consultations to predict the future usage of the freight network by business and industry in the region after the implementation of identified options. Step 4 is the prioritisation of the projects, with a weighted criteria used to as mechanism for ranking potential projects. This final stage would result in the information that the decision maker requires for a fully informed decision on the network improvements represent the best investment. It enables a comparison of the projects, to provide a means by which prioritised initiatives can be converted into a potential program of projects that can be funded with the resources available. The study would not identify sources of potential funding, however the results from the study would inform decision making processes regarding the transportation network improvements. Several aspects of these steps are discussed further in more detail in the following sections. Stakeholders As part of the study, substantial in depth consultation would be conducted with stakeholders. This includes industries within the region, Local Councils, and State Government agencies to identify deficiencies and potential improvements to the freight network, including road, rail, airport and port connections. The emphasis within this part of the process is on supply chain obstacles and corresponding solutions which would enable further development and expansion of the industries and businesses in the region. This would give an enhanced appreciation of the nature of the specific influences on the freight task in the region.